Despite weathering a historic storm of collapses and scandals, the gaming and Web3 industries haven’t stopped building. To continue that trajectory, participants at the SEG3 conference in Los Angeles agreed that property rights and the resulting revenues are important. Less clear, however, was whether blockchain technology could play a role.
SEG3, which comes to California after two years in Europe, is billed as a “global meeting place for the sports, entertainment and gaming industries to connect and learn how to build better digital products and experiences.”
Epic Games Director of Business Development Craig Laliberte took the stage to demonstrate Unreal Engine’s many uses, including the creation of NFL team and Fortnite animations using the powerful tool. Laliberte also discussed the developer’s new digital asset marketplace FAB, but clarified that the available images were not NFTs.
“[FAB] is not going to host NFTs or blockchain-based stuff,” Laliberte said. “We stick to standard purchases.”
While crypto enthusiasts are championing blockchain technology for everything from gaming to healthcare, entertainment studios don’t seem optimistic. And for many in the gaming industry, NFTs have become a dirty word associated with money grabs and scams.
Gamers have expressed their distaste for the crypto-based JPEGs. In 2022, Epic Games raised $2 billion to “build the metaverse,” but it didn’t include NFTs in its list of ambitions.
Despite the new digital asset market moving away from the dreaded NFTs, Epic Games has allowed blockchain-based games on its Epic Game Store. The Solana ecosystem, including the developers behind the highly anticipated Star Atlas, has come to the store as a viable alternative to platforms like Steam.
When asked how gamers can own the assets without using blockchain, Laliberte said that gamers’ purchases are not limited to Epic Games’ technology.
“So the most important thing is that we don’t lock you into Unreal Engine or UEFI while you can take stuff in and out as you see fit,” he shared. Declutter. “These possessions are your possessions, and you are free to take them wherever you please.”
In another panel, Universal Music Group Senior VP of New Business Alvaro Velilla said there is no need to adopt blockchain technology.
“Despite how well-crafted the strategy is, there is no reason to adopt one of these technologies if it doesn’t meet a particular need or doesn’t help you,” Velilla said. “The NFT protocol will be technologically complete in 2020.”
But when attendees were asked what the reason was for not wanting to get involved with blockchain even today, the answers came down to risk.
“Publicly traded companies are risk averse to blockchain, partly due to its association with the volatility of the cryptocurrency market, but also due to scams and regulations,” said a Sony Interactive Executive. “Plus, there is no real need for the technology.”
“Blockchain needs to be able to do what current technology already does to be worth the investment,” they said.
However, the crypto faithful remain steadfast in the belief that proving who created and owns an asset via blockchain is necessary for true ownership.
“We talk about right-click saves all the time,” said Kyler Frisbee, CEO and co-founder of Pogs Digital Declutter. “It’s not real, authentic ownership unless you have something that establishes your ownership, and the blockchain is that fundamental ledger that is decentralized, and not maintained by a central entity that tells us all who owns what.”
Frisbee emphasized that the only way to truly own an asset is to have true control over it. His comments echoed those of award-winning director Christopher Nolan who – after his film Oppenheim was nominated for thirteen Academy Awards – encouraged moviegoers to buy physical media to own and not rely on the goodwill of streaming services.
“I don’t know if there’s any real ownership unless it’s in your wallet, whether it’s a physical wallet or a digital wallet,” Frisbee said. “Whether or not your name is on the deed, there has to be some substantial way that we all recognize that proves ownership, and without blockchain I don’t see how that has happened until now.”
Edited by Ryan Ozawa.